Asked by Briana Flores on Apr 27, 2024
Verified
Refer to Figure 9-4. Producer surplus in this market after trade is
A) A.
B) A + B.
C) B + C + D.
D) C.
Producer Surplus
The difference between the amount a producer is paid for a good or service and the minimum amount they are willing to accept for producing it.
Trade
The action of buying, selling, or exchanging goods and services between people, firms, or countries.
- Become aware of the consequences of trade on consumer and producer surplus.
Verified Answer
ND
Nicole, Deaf_Life_May 03, 2024
Final Answer :
C
Explanation :
Producer surplus after trade is represented by the area above the supply curve and below the market price. In this case, it includes areas B, C, and D.
Learning Objectives
- Become aware of the consequences of trade on consumer and producer surplus.